How Long to Read Contingent Convertibles [CoCos]

How Long Does it Take to Read Contingent Convertibles [CoCos]?

It takes the average reader 4 hours and 57 minutes to read Contingent Convertibles [CoCos] by George M von Furstenberg

Assuming a reading speed of 250 words per minute. Learn more

Description

Contingent Convertibles (CoCos) represent debt that is subject to being converted automatically into common equity under pre-specified terms of conversion if the chosen regulatory capital ratio falls to a level triggering conversion. CoCos are that subspecies of contingent capital that references regulatory (Basel III) concepts in its triggers. From 2014, trigger points are set by common equity (Common Equity Tier 1 [CET1]) in percent of risk-weighted assets [RWA] or of more complicated measures of total exposure to a variety of risks, particularly credit risk. This is the first comprehensive book on CoCos, an innovative instrument that has attracted growing attention since it was first issued in 2009. The book is mostly concerned with going-concern ‘recovery-’ rather than ‘resolution-’ CoCos, because avoiding failure and costly disruption of financial networks without government financing is the first order of business. CoCos hold a high promise of providing fully loss-absorbing equity capital when it is most needed and least available to financial institutions. Yet, having grown out of the 2007–2009 financial crisis, they are still an ‘infant’ reform instrument in many respects. Few of the instrument's design features (or even the rating, regulatory, and tax treatments) are entirely settled. This book seeks to move the discussion toward, and then past, the main decision points so that CoCos can prove their value for contingency planning and self-insurance all over the world. It is intended to increase the ability of issuers and investors to analyze and understand the different kinds of CoCos. Contents:Foundations:IntroductionOverview of Basel III Implementation Most Relevant for CocosCocos and the Struggle to Preserve Going-Concern ValueThe Treatment of TBTF Financial Institutions in the Last CrisisStrategic Policy Objectives in Privatizing the TBTF BackstopWhy Cocos?:High-Trigger Cocos Compared with Other Bailinable DebtSelf-Insurance with Cocos Compared to Common EquityAutomatic Cocos Conversion vs. Voluntary RestructuringReasons for Having Cocos Liabilities on the Balance SheetVarieties of Cocos Design and Rationales:Determining Conversion Price and Risk Premium in CocosWrite-Down-Only CocosActual or Prospective Recovery Rates from Converting CocosGovernment Capital Injections and Bailout CocosMisuses of Cocos in Government-Led Recapitalizations of BanksPolicy Choices and Essentials for Cocos' Success:The Tax Treatment of the Interest Paid on CocosMajor Credit Rating Agencies' Approaches to Rating CocosRegulatory Requirements at Cross-PurposesConclusions and Recommendations for Cocos Design and Evaluations Readership: Researchers in Banking, Finance, and Financial Service, Finance Professionals, Law Firms, Accounting, and Financial-Consulting Firms; Portfolio and Wealth Management Specialists; Fixed-Income Investors and Fund Managers; Government Regulators of Financial Services; Libraries and Members of Research and Capital Markets Divisions at National and International Financial Institutions. Key Features:First book in existence that is principally devoted to CoCos. The new instrument, by being triggered under Basel III rules to convert to common equity when needed to enhanceloss absorbency, could greatly strengthen self-insurance and self-discipline, especially of too-big-to-fail banking institutionsLack of standardization and regulatory uncertainty, including uncertainty about the tax treatment of interest paid on CoCos and about the extent to which they satisfy capital requirements, hinder the credit-rating and adoption of this vital reform instrument. The book explains these deficiencies and points the way to how they can be overcomeKeywords:Contingent Convertibles;CoCos;Financial Reform;Financial Crisis;Risk Management;Bank Capital;Financial Services;Fixed-Income Securities;Basel IIIReviews: “Specialists who focus on CoCos in some capacity should read this book. Anyone interested in a deeper dive into how markets and regulators deal with deteriorating financial institutions will find this book provides a useful on-the-ground view often missing from books covering financial crises. von Furstenberg has materially added to this important global discussion on how to promote financial stability. ” Global Credit Review

How long is Contingent Convertibles [CoCos]?

Contingent Convertibles [CoCos] by George M von Furstenberg is 288 pages long, and a total of 74,304 words.

This makes it 97% the length of the average book. It also has 91% more words than the average book.

How Long Does it Take to Read Contingent Convertibles [CoCos] Aloud?

The average oral reading speed is 183 words per minute. This means it takes 6 hours and 46 minutes to read Contingent Convertibles [CoCos] aloud.

What Reading Level is Contingent Convertibles [CoCos]?

Contingent Convertibles [CoCos] is suitable for students ages 12 and up.

Note that there may be other factors that effect this rating besides length that are not factored in on this page. This may include things like complex language or sensitive topics not suitable for students of certain ages.

When deciding what to show young students always use your best judgement and consult a professional.

Where Can I Buy Contingent Convertibles [CoCos]?

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